A good reminder on CNBC concerning the purchase of stocks & ETFs versus mutual funds.
Stocks and ETFs trades take 3 business days to clear versus mutual fund trades which take 1 day to clear.
Why is this important?
If one sells a stock or ETF and buys a mutual fund the same day, there will be insufficient funds in the brokerage account to purchase the mutual fund because the stock or ETF transaction needs another 2 days to clear.
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